E filing of transfer pricing reports

E-Filing
of Transfer Pricing Reports

As at
14th November, 2013

CA AMEET PATEL

Recent Amendments in ITA


W.e.f. AY 2012-13, any resident who is otherwise not required to
furnish a ROI, will now be required to furnish a return if has asset located outside India including any financial interest
in any entity, or
 has signing authority in any account located outside India
New



The Finance Act, 2013 has made an amendment to explanation
to section 139(9) – treatment of return as defective if self
assessment tax and interest not paid before filing of return of
income
New

The amendment will be with effect from 1.6.2013 and is
applicable to returns filed after that date

Introduction to the ‘New Uploading
Requirements’

Introduction to the ‘New Uploading Requirements’


With effect from AY 2013-14, e-filing of Audit Reports under section
44AB (tax audit report ‘TAR’ alongwith Financial Statements and other
Audit reports, if any), section 92E (transfer pricing – international &
domestic), section 115JB (Form 29B for MAT), Form 10B (charitable
trusts), Form 10BB (educational/medical institutions) and Form 10CCB
(80-IA/80IB/80IC/ 80ID/80JJAA/80LA) have been made mandatory
 To be filed on or before the due date of filing the return
 To be filed before uploading the return
 Data to be entered in utility provided by income-tax department &
converted into ‘xml’ before uploading or to be entered in an online
form for online submission



Tax Payer and the CA who will be signing Form 29B, TAR and Transfer
Pricing report will have to be registered with the Income Tax
Department Website. CA is required to have a valid PAN and DSC for
the registration.

‘New Uploading Requirements’ – CA Registration


For registration and uploading of forms, steps shown in the following
slides will have to be followed.



Every auditor/certifying CA will be a new user for A.Y. 2013-14 and
will have to click on the Register Yourself button given on the e-filing
website.



Under “Tax Professional”, select “Chartered Accountant” and click
on the CONTINUE button.



The REGISTRATION FORM screen will appear.


Enter the details, upload the Digital Signature Certificate (DSC) and click
CONTINUE button.

Procedure

Click on following
option for
registering as tax
professional
Click on
“Chartered
Accountants” for
registering as tax
professional

Procedure
Input following
details for
registering as tax
professional



On successful validation, you will be directed to the next page of registration where you have to
enter additional details like Password, Contact, Postal address and enter the Code displayed on
the screen and click on the SUBMIT button.

On successful registration, a message will be displayed along
with a transaction ID. An email with the user ID and activation
link will be sent to your registered email ID. An alert will also be
sent on the registered mobile number.
 Make sure you provide a valid mobile number and email ID as all
the future communications will be sent to this mobile number
and email ID.




After you login, the blue navigation bar on top will display additional
menu options.
Dashboard Option: Provides the current notifications and also the
details of your previous e-filed reports.
My Account option: Provides services such as View Forms and View
Client List.
e-File and Downloads options: Allows you to file your reports and
download forms, respectively.
Profile Settings option: Allows you to update your profile, details
like DSC upload, secret question, contact details, change password,
etc.
Worklist option: Provides list of items, which may be pending for
action at your end.
Helpdesk option: Allow you to raise a query, if you face any issues
while e-Filing and check status, if raised.

‘New Uploading Requirements’ – Add CA


Assessee has to add CA to enable the CA to upload
the Forms (other than ITR) on his/her behalf
Assessee should Login to e-Filing portal
Navigate to My Account -> Add CA
Enter the Membership No. of the CA, select the Form and
Assessment Year and enter captcha code.
Click submit. Success message should be displayed on the
screen.

Step 1 for Adding CA by the Tax Payer

14


Fill ICAI M. No.
of CA here

Name of CA will
automatically
appear here

15


16

Step 4 for Adding CA – View List of CA

17

‘New Uploading Requirements’ – Offline Preparation
• On www.incometaxindiaefiling.gov.in, from the ‘Downloads’
section on the right, either select ‘Forms (other than ITR)’

Click on following
option for
downloading
E- forms

• On clicking on the e icon, a zip file appears. On selecting the zip file, a JAVA
based utility is displayed. Hence, the user is required to update JAVA
(version 7 update 6 or above) on the computer.

Select following
option to
download
E – utility File

Click on
this option
to view the
list of
forms.

•

‘File’ option under the utility provides option to select the Form which you
want to fill.

Click on
appropriate
form as
desired

• User will fill in the details in the Form and save the same as
draft in ‘xml’ format in the desired folder.
• To reopen the draft for further editing the user needs to enter
the utility on the income tax site, click on the ‘Open Draft’
option given on the taskbar, browse the saved xml file and
update as per requirement.
• Common details in the form get automatically updated once
entered. (eg: data filled in 1st Tab is picked up automatically in
the next tab - details like company name, address, previous
year and assessment year)
• Please ensure that you download the latest version of the
utility from the site. As at 11th November, the latest utility is –
FORMS_2013_PR13.exe

Procedure
Click on
“save
draft”
option to
save the
form

Click on
“open” to
access /
update form

• „Validate‟ option, validates all the pages of the Form and
throws up the errors in the form.

• Once the form is validated, „Generate xml‟ option creates
a final xml which has to be uploaded with the department.

‘New Uploading Requirements’ – Online Submission of
Offline Preparation
1. Go to 'e-File' menu, Login and select “Upload Form“
2. LOGIN to e-Filing application and GO TO --> e-File --> Upload Form
3. Enter the Tax payer’s PAN, CA’s PAN; select the Form Name (other
than ITR) and the Assessment Year.
4. Browse and Select the XML file
5. Upload Digital Signature Certificate.
6. Click 'SUBMIT'.
7. On successful upload, the Form (other than ITR) is sent to Tax Payer's
workflow for acceptance.
8. The Tax Payer should LOGIN to e-Filing application, GO TO Worklist
and accept/reject the form.
9. A) On Approval, the Form is successfully submitted with e-Filing
application. No further action is required.
B) If Rejected, the Tax Professional can file the Form (other than ITR)
again and follow the same process as mentioned earlier.

‘New Uploading Requirements’ – Direct Online
Submission
1. Go to 'e-File' menu, Login and select "Submit Form Online"
2. Enter the Assessee PAN, CA’s PAN, select the Form Name (other
than ITR) and the Assessment Year.
3. Upload Digital Signature Certificate of the CA
4. Click 'SUBMIT'.
5. Enter the data and Submit.
6. On successful submission, the Form (other than ITR) is sent to
Assessee's workflow for acceptance.
7. The Assessee should LOGIN to e-Filing application, go to
Worklist and accept/reject the Form (other than ITR).
8. a) On approval, the Form is successfully submitted with e-Filing
application. No further action is required.
b) If rejected, the CA can file the Income Tax Form (other than
ITR) again and follow the same process as mentioned above.

Acceptance / Rejection of Report by Assessee –
Format of Acknowledgement

3CEB

27

Summary of Workflow – Registration and Uploading
Step 1

CA registers in e-Filing portal

Step 2

Assessee “adds CA” for the desired Form (Other than ITR) and Assessment Year

Step 3

CA logs in e-Filing portal

Step 4

CA Downloads the offline Form, fills the data, generates and uploads the XML Or
CA opens the online Form, fills the data and submits the Form

Step 5

CA gets the success message and the transaction ID

Step 6

Assessee reviews and approves. An acknowledgment number is generated

Step 7

CA can view/print the submitted Form
using the functionality “View Forms”

Assessee registers in e-Filing portal

Assessee can view/print the
submitted Form using the
functionality “e-Filed Returns/Forms”

E-filing of Transfer Pricing Reports - Issues
TAB Key cannot be used to navigate from one field of
Form 3CD to another field
User has to click every field manually
Unlike the ITR form, the validation option cannot be used

only for a specific page. The validation option validates
the entire form
To save the file, use “Save Draft” option. Unfortunately,
every time you save the draft, it asks you for the path
and file name.

Wherever the information is captured in tables
To add row
Click on “ADD ROW” button, fill in the data and click
“ADD” button to add the data
To delete row
Select the “ROW “to DELETE from the list and click
“DELETE ROW “button
To edit row
Select a row from the list, click on “EDIT ROW “and
make changes as needed and click “SAVE”
To copy row
Select the row to copy from the list and click “COPY
ROW” button

There are 25 clauses for FY 2012-13 (in earlier year there were 13
clauses) - The same is brought into force to harmonise with the
extended scope of transfer pricing
Causes 1 – 9 : General information about the assessee
Clauses 10 – 20 : International transactions with associated
enterprises (AE)
Clauses 21 – 25 : Specified domestic transactions with related party
Use of special characters like ,(comma) – (minus) is to be avoided.
Because e-filing site shows errors at the time of uploading. Special
characters should not be used in name of the assessee
Example: ABC-XYZ Ltd or ABC (India) Ltd
There is an upper limit of 125 characters for the Name
Previously clause 7-13 was related to international transactions, now
the additional reporting includes issue/buyback of equity shares,
restructuring, guarantees, etc.

31


32

Where do you write the notes, disclaimers etc? Option for
notes is not available in utility. Even when uploading the Form
3CEB, there is no option for any attachment. So, unlike in case
of 3CD, here we cannot attach a separate statement of
disclaimers or notes..
Word limit has been fixed for reporting in the e-filing schema
like under each clause of Form 3CEB limit has been set.
Example - Business description of AE in clause 10 has the
limit of 100 word count.
Every field is to be entered separately into the utility – copy
paste of a range of cells from a spreadsheet or a document is
not possible
Clause 8 & 9 (aggregate value of reportable transactions)
does not get filled up automatically. Person who fills the form
needs to take care of totalling.

Validation is not proper –
There is a clause 10 for mentioning List of AEs. However, in
the clauses of transactions with AEs, it is possible to mention
some other AE (which is not mentioned in Clause 10).
There is a clause 14 for giving details of lending/borrowing
transactions. Here, if you put “Lending” as the activity and
“Paid/Payable” as the “Amount
paid/payable/received/receivable”, it does not show an error
In respect of purchases and sales, there is a field for
mentioning the quantity. This is an alpha numeric field.
At many places, the currency has to be mentioned. There is no
drop down list provided for the same.
For every clause, one has to select “NO” if it‟s not applicable.
Default does not work.
33

No print option: Print option is not available unless the form is
uploaded. Once TP auditor uploads the form, then only
assessee can view the PDF version of the Form 3CEB.
Fake path problem: This problem is due to your internet
explorer browser settings.
Solution:
• Option I : In internet explorer-> tools ->internet option >security -> custom level-> enable "include local directory path
when uploading file to the server".
• Option II : Create a folder in the "c" drive called “fakepath”
(c:fakepath) and copy the XML files to this folder.
(In Google chrome second option will work)

34

Thank You!
You can contact me on
patelameet@hotmail.com

E filing of transfer pricing reports

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